Legal Question in Business Law in Arkansas

I purchased a restaurant a year ago. The previous owners provided two years financials that showed a good income. They did not provide the most current years financial infiormation. I have substantial debt from the purchase and have not earned any income. I had to liquidate my 401K to keep the doors open. I shut the doors for two months this summer due to no income. I am a single mother with two children to support. I am on the brink of financial ruin. Do I have any recourse with the previous owners?


Asked on 8/31/10, 8:58 am

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

Any attorney will say if there was misrepresentation by the seller regarding the financial condition of the restaurant when you bought it, you have grounds to bring a lawsuit. At that point various options are available, like damages and rescission. Consult with a good business attorney in your area for specifics.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 9/05/10, 9:27 am


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